According to a spokeswoman for one of the parties involved in the negotiations, they will sign off on the coaltion later today.

The agreement follows a series of talks between Netanyahu and the more right-wing parties in the Israeli political scene. The prime minister clashed with the Jewish Home and Yesh Atid parties over welfare to Ultra-Orthodox Jews and military conscriptions.

However, a spokesperson for Yesh Atid, speaking to AP on condition of anonymity, said a deal had finally been struck.

Netanyahu's Likud-Yisrael Beitenu bloc managed to win 31 seats at the latest elections but needed a further 30 seats to make up an overall majority.